The good news is: Americans are getting better about setting money aside for emergencies.

The bad news is: Americans still aren’t very good about saving money for emergencies.

The worst news is: Older Americans are the worst, and they should know better!

Boomers Aren’t Preparing

Recent research indicates Baby Boomers aren’t doing a great job at saving for a rainy day. A survey by Bankrate found 32% of Baby Boomers between the 53-62 did not have ANY savings set aside for an emergency. No savings at all. This is more surprising when you consider how close they are to retirement. Their age group needs to save more than any other, yet they ranked the highest of all surveyed.

Financial experts recommend a solid emergency fund. Most experts recommend an emergency fund capable of covering 3-6 months of expenses. Bankrate financial expert Greg McBride says the high percentage of young Boomers have the economic crisis to blame. According to McBride, the recent recession affected Boomers disproportionately due to investment losses and extended unemployment. The market crash affected the emergency savings funds of this group most. The survey found those aged 63 and older fared better. This group had the lowest percentage of respondents without any emergency savings. 50% of adults 63 and older replied they had at least 6 months of expenses covered in savings.

Save Now, Save for Life

The survey found 25% of all Americans don’t have any savings. On the positive side, that’s the lowest number since the survey began in 2011. Additionally, 31% of the survey respondents now have six months worth of expenditures covered in savings. This, too, is the best result since 2011.

A surprising finding of the survey was how well millennials were at financial planning. While infant boomers are more likely to have enough to cover six months of expenses or more, Millennials are more likely to have three to five months and were better at keeping emergency funds overall.

Life stages are a definite factor when it comes to saving. Fewer millennials are starting families, and more are still living with their parents – the Baby Boomers. Experts state increasing savings is an important step to safeguarding your financial future and decreasing your stress levels. This is true no matter your current age or your financial situation.

McBride says the first step to this process is easy: setting up an automated savings deposit from your current job. You have to make a choice to start saving. No one else is going to take this step for you.

We’re always on the prowl for great information on insurance topics that may impact your health and your wallet. If you have any insurance-related questions, reach out to us.